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blanket prohibition on consideration of code-sharing arrangements as one element of negotiations with our bilateral aviation partners is advisable. It is conceivable that, in some particular instances, selective expansion of code-sharing rights for a foreign carrier or carriers could be part of a broader bilateral agreement substantially enhancing the access of U.S. carriers to foreign markets with a corresponding increase in U.S. earnings and employment. It is also possible that additional domestic business could be generated by such agreements. Thus, proposals involving international code sharing may be properly considered on a case-by-case basis.

Under existing law, moreover, bilateral aviation agreements are intended to achieve a balanced exchange of economic benefits and opportunities. (Section 1102(b) of the Federal Aviation Act of 1958, as amended.) The Committee expects that the administration will comply fully with this requirement and will enter into no agreements involving expanded code-sharing rights for foreign carriers with an overall detrimental impact on the U.S. aviation industry, the U.S. labor force, or existing U.S. gateway airports. The Committee, furthermore, directs the Department to submit a report explaining how these requirements are to be met to the House and Senate Committees on Appropriations prior to concluding any agreements which would entail broader code-sharing rights for foreign carriers within the United States.

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The Office of the Secretary performs those research activities and studies which can more effectively or appropriately be conducted at the departmental level. This research effort supports the planning, analysis, and information development needed to assist the Secretary in the formulation of national transportation policies. The program is carried out primarily through contracts with other Federal agencies, educational institutions, nonprofit research organizations, and private firms. The University Research Program, transferred back to the OST in fiscal year 1985, provides assistance to colleges, universities, and their students to conduct research in the field of transportation. Special emphasis is placed on assisting historically black colleges and universities to take part in transportation research and on aiding minority students in preparing for careers in transportation. This appropriation also includes the Commercial Space Transportation Program which supports the mission of licensing and promoting the development of a private expendable launch vehicle [ELV] industry.

The Committee recommends $4,900,000 by transfer for transportation planning, research, and development. This is $2,600,000 less than the

budget request (disregarding the transfer). It represents an increase, however, of $1,551,000 over the fiscal year 1987 enacted level (excluding $650,000 in transfers) and is $100,000 less than the House allowance.

The Committee recommendation includes the following distribution by activity as compared with the budget request:

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Within the total available for contract research, the Committee recom

mends the following allocation:

National strategic transportation planning study
Nashville-Davidson County, TN, long-range transportation planning study.

$650,000

250,000

New York, New Jersey, Connecticut metropolitan region long-range transportation planning study.

250,000

Southern New Jersey/southeast Pennsylvania long-range transportation planning study.......

250,000

Commercial space contracts

750,000

The Committee concurs with the House in restricting travel and other administrative expenses to $200,000.

NATIONAL STRATEGIC TRANSPORTATION PLANNING STUDY

The Committee agrees with the House that the Nation faces major decisions early in the next decade concerning the development and expansion of its transportation infrastructure. These decisions will obviously have a critical bearing on the direction of social development and the potential productivity of our economic system. The Committee is informed, however, that the strategic planning study directed in the House report can be carried out for $650,000 in lieu of the $1,750,000 earmarked by the House. The study, of course, should address all modes of transport, including railroads.

Among the areas that should be included in this study is the Sacramento-San Francisco Bay urban complex.

The Northeastern megalopolis will inevitably be a major focus of any national strategic planning with respect to future transportation problems and requirements. Accordingly, the Committee has earmarked an additional $500,000 specifically for the study of the central segments of the Northeast transportation network.

The Committee also concurs with the House in providing $250,000 for the study of the unique situation presented by Nashville-Davidson County, TN.

OFFICE OF COMMERCIAL SPACE TRANSPORTATION

The Committee approves a total of $1,500,000, the same as the House allowance, for this activity. Of this sum, one-half is for contract research and the remaining $750,000 is available for up to 10 detailees or employees from other Federal agencies to perform this function in-house.

The budget proposed $4,000,000 for contract research. The Committee, however, agrees with the House that the necessary expertise is obtainable at much lower cost from NASA and other Federal agencies.

SLEEP RESEARCH

The Committee has received testimony by experts on the important role that fatigue, sleep disorders, and sleepiness play in transportation mishaps and fatalities.

A recent Office of Technology Assessment conference supported the observation that many Americans are operating motor carriers, airplanes, and other vehicles while fatigued and sleep deprived. Some are involuntarily sleepy because of an undiagnosed sleep disorder such as narcolepsy or sleep apnea. Others experience the lethargy and fatigue associated with disturbed sleep/wake cycles, such as shiftwork, long distance flying, and jetlag. Still others experience a cumulative sleep debt due to a chronic pattern of trying to get by every day on an hour or two less sleep than is required to keep them alert.

The Committee requests the Secretary to use a portion of the planning, research, and development budget to study the extent of this emerging issue and develop mechanisms to monitor the frequency and timing of these problems, and reduce the frequency of these sometimes devastating mishaps.

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The working capital fund [WCF] provides for centralized financing of certain common administrative services (e.g., publishing and graphics and computer services) in the interest of economy and efficiency. The fund is reimbursed from the appropriations of the operating agencies of the Department at rates that recover all operating expenses in full.

The bill includes a limitation on the WCF of $134,527,000. This is a reduction of $14,942,000 from the budget request and is $473,000 below the House allowance. It is an increase, however, of $69,027,000 over the fiscal year 1987 limitation. The limitation recommended reflects an assortment of savings in the overhead services provided through the WCF.

The majority of the increase in the obligation limitation, $65,435,000 is required to provide the obligation authority in the WCF to allow for improved accounting records for payments made on behalf of the Department for: headquarters SLUC ($58,348,000), unemployment compensation ($3,000,000), General Services Administration [GSA] building maintenance ($3,937,000), and the employees contributing to parking

($150,000). These payments are WCF-related and should be included in the fund to ensure proper accounting and accurate financial statements. One billing is made to the Department and paid through the Office of the Secretary [OST], but budgeted by the operating administrations and OST or DOT employees. The current accounting treatment of these costs does not provide adequate accounting backup as they are not established as true obligations in the accounting records. With the obligation authority, the Department will have improved tracking on the status of obligations, payables, and receivables.

An appropriation of $3,915,000 is also requested to provide for the development of a departmentwide accounting and financial information system and for office space reduction activities. The Committee recommends $1,685,000, $100,000 less than the House allowance, for DAFIS and $215,000 for office space reduction. Any further costs for these activities are to be absorbed.

PAYMENTS TO AIR CARRIERS

Appropriations, 1987.

Budget estimate, 1988..

House allowance...

Committee recommendation.........

$30,000,000

38,000,000

32,000,000

The Secretary of Transportation now administers the section 419 Subsidy Program, which was created as part of the Airline Deregulation Act of 1978. Subsidy under this program is paid to airlines, primarily commuter carriers, to support the provision of essential air service to points that would not be served but for the subsidy. The payments to the air carriers program is scheduled to expire on October 24, 1988. The Administrator proposes to terminate the program a year early and no new funds were requested in the budget.

The Committee recommends $32,000,000 for fiscal year 1988 payments to air carriers, which is $6,000,000 less than the House allowance. The following table shows the carriers and communities participating in this program in fiscal 1987.

CARRIERS RECEIVING LONG-TERM SECTION 419 COMPENSATION AND THE
COMMUNITIES SERVED

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CARRIERS RECEIVING LONG-TERM SECTION 419 COMPENSATION AND THE
COMMUNITIES SERVED-Continued

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